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Violet Loftus

cel Project

Question $1,$ Advanced $4-2($similar to$)$

HW Score: $7\mathrm{.}69\%,1\mathrm{.}54$ of $20$ po

Amortization schedule. Sherry and Sam want to purchase a condo at the coast. They will spend $$600,000$ on the condo and are taking out a $$600,000$ loan for the condo for twenty ears at $7\mathrm{.}3\%$ interest.

What is the annual payment on the mortgage?

$.$ Construct the amortization schedule of the loan for the twenty years in a spreadsheet to show the annual interest costs, the principal reduction, anc the ending balance each year

Then change the amortization schedule to reflect that, after ten years, Sherry and Sam will increase their annual payment to $$78,000$ per year.

$.$ When will they fully repay the mortgage with this increased payment if they apply all the extra dollars above the original payment to the principal?

$\backslash$table$[[$Year$,,"$ary$,,,,$erest$,$rimisapa Reduction,Latua Principal,Laknay Balance$],[$Balance$,$Payment,Expense$],[15,5,273,742\mathrm{.}88,$$$,57,963\mathrm{.}05,$$$,19,983\mathrm{.}23,$$$,37,979\mathrm{.}82,$$$,0\mathrm{.}00,$$$,235,763\mathrm{.}06]]$

Then change the amortization schedule to reflect that, after ten years, Sherry and Sam will increase their annual payment to $$78,000$ per year mplete the amortization schedule of the loan for year $15$ below. $($Round to the nearest cent.$)$

$\backslash$table$[[$Loan Amount,Interest Rate,Years for Loan$],[$Year$,$$$,600,000,,7\mathrm{.}3\%,20],[,$Beginning,,Annual,,Interest,,Principal,,Extra,Ending$],[,,$Balance,,Payment,,Expense,,Reduction,,Principal,,Balance$],[15,$$$,,$$$,,$$$,,$$$,,$$$,,5,]]$

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